What Is a “Loophole” in California Tax Laws?
What Is a “Loophole” in California Tax Laws? By Chris Micheli For years around the State Capitol, and this year in particular, we have heard the claim of tax increase proponents in the Legislature or proposed initiatives on the ballot are simply “closing a tax loophole.” So, what exactly is a “loophole” in the tax laws? According to a dictionary definition: loop·hole /ˈlo͞opˌ(h)ōl/ noun an ambiguity or inadequacy in the law or a set of rules. Similarly, according to Wikipedia, “A loophole is an ambiguity or inadequacy in a system, such as a law or security, which can be used to circumvent or otherwise avoid the purpose, implied or explicitly stated, of the system.” Other observers have defined a loophole as “basically a technicality that allows one to escape violating the law through some activity.” My takeaway from these definitions...